There are two timelines that must be followed for a 1031 exchange to be successful.
Identification Period
This is the period during which the party selling the property must identify other replacement properties that he proposes to buy. It is scheduled as 45 days from the day of selling the relinquished property. The 45 days timeline has to be followed under any and every circumstances and is not extendable even if the 45th day falls on a Saturday, Sunday or any legal holiday.
Exchange Period
This is the period within which the person who has sold the relinquished property must receive the replacement property. It ends at 180 days after the date on which the person transfers the property relinquished or the due date for the person's tax return for the taxable year in which the transfer of the relinquished property occurred. According to 1031 exchange rule about timelines this 180 day timeline has to be adhered to under any circumstances and is not extendable even if the 180th day falls on a Saturday, Sunday or any legal holiday.
Property Exchanges Under Section 1031
Under section 1031 of the Internal Revenue Code, any US taxpayer is able to defer their capital gains taxes on the sale of real estate, provided they meet the requirements. The best way to ensure that you meet all of the necessary requirements is to consult with a 1031 exchange facilitator. At CPEC1031, our intermediaries have two decades of experience working with taxpayers on their exchanges. Contact us today to learn more about our services and get your exchange up and running!
Start Your 1031 Exchange: If you have questions about 1031 exchanges, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
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